How do Hotels benefit under the Omnibus Incentives framework?

How do Hotels benefit under the Omnibus Incentives framework?

Jamaica Tourist Board (JTB) licensed hotels, regardless of their size – ranging from ten (10) rooms to over three hundred and fifty (350), will benefit from the following incentives:

  • Employment Tax Credit (ETC) and thus face a corporate income tax as low as 17.5% 
  • Reduced GCT rate of 10% will be paid by hotels that have chosen to operate under the Omnibus Incentives framework.  Where hotels chose to remain under the Hotel Incentives Act (HIA) they will be charged the standard GCT rate of 16.5%.
  • Capital Allowances that cover, among other things, a broadened definition of ‘industrial buildings’ to include hotels
  • Duty-free Importation of Equipment and Machinery, as well as revised tariff rates ranging from 0% to no higher than 20% (with some exceptions). Relief from income tax to certain overseas lenders who fund licensed hotel and resort cottage operations is also provided.
  • Productive Input Relief (PIR) that provides for duty free importation of certain hotel industry-related items that would have normally attracted customs duties and the Additional Stamp Duty (ASD) when these are being purchased for productive use. 

Hotel projects can also benefit under the Income Tax Relief (Mega Projects and Pioneer Industries) Act, where they qualify, for an attractive rate under the Employment Tax Credit (ETC) system.